Fontainebleau Las Vegas company files Chapter 11 - Los Angeles Business from bizjournals:

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Fontainebleau Las Vegas LLC and two of its affiliates – Fontainebleau Las Vegas Holdings LLC and Fontainebleauy Las Vegas Capital – filed bankruptcy petitions in Miami late The Miami Beach hotel is not included in the The company said in a news release that the decisioj to file Chapter 11 was the directt result of litigation with lenders on the Las Vegax hotel construction project that had to do with contractuakl disputes related to nearly $800 million in construction fundinfg for the $2.9 billion resort-casino project, whicnh is 70 percent complete. Lendera include , and Deutsche Bank Trust Co. Americas.
The legalk dispute has effectively shut down the projectand “put thousands of people out of work,” said Howarc Karawan, chief restructuring officer of Fontainebleauj Las Vegas, in the release. “Our goal now is to securde funding to completethis world-class project and restructure our existingg debt.” Fontainebleau Las Vegas reached a provisional agreement with a groulp of its non-defaulting lenders for the use of cash for the administration of its bankruptcy case, and is in negotiationsd to obtain financing to restart construction on that Fontainebleau Miami Beach, which is a separate legal entity, continues to operate as normal.
Turnberry West Construction, the project’s generalo contractor, is also not included in the filing, accordingv to the news release. In 2008, Nakheel Hotele of Dubai bought a 50 percent interest in the Fontainebleau Miami Beacjhfor $375 million. The Las Vegazs hotel companies that fileds bankruptcy are based in Southu Florida because the Soffer familyof Aventura, which also owns the Turnberrty development and construction companies, owns all the Fontainebleaui companies. Jeffrey Soffer is a principa of umbrella company FontainebleayResorts LLC, according to state records.
Fontaineblea u Las Vegas also withdrew withougt prejudiceits $3 billion lawsuit in Las Vegaas against some of its lenders, and refiled the case in Miami bankruptch court, where the Chaptefr 11 petitions were filed. The lawsuit with lenders was amended on May 12 to include allegations that Deutsche BankTrusft Co. Americas was “seeking to destroy the Fontainebleauh in order tominimize competition” with the nearby and which is wholly owned by a Deutsche Bank "This claim is an attemptt by the Fontainebleau's developers to distract from the fact that they have breacher their loan covenants.
We will defend ourselves vigorouslt against thismeritless allegation," Deutsche Bank spokesman John Gallaghee said in an e-mailed response. Fontainebleay Las Vegas LLC lists morethan $1 billion in debt and a similarf amount in assets on its petition, with more than 1,000 The only South Florida creditor listed was Internationao Bedding in Fort Lauderdale, with a claim of $498,737.